Azalea Capital, Argosy Private Equity, and Ranger Aerospace have formed Ranger AeroSystems to pursue investments and acquisitions in the aerospace industry. This marks the third time that Ranger and Argosy have affiliated in the past dozen years.
“It’s a privilege to have major investors like Argosy join us multiple times—that speaks volumes. Azalea and Argosy are great teammates with Ranger,” said Steve Townes, Ranger Aerospace CEO and founder. “This consortium of proven experts aims to create a large and lasting enterprise. With two substantial institutional co-investors, we now have plenty of capital and plenty of time for building a strong platform. We’ve done this before—we’re doing it again.” Argosy was a major investor in Ranger’s previous successful investments with both Keystone Helicopter and Ranger International.
Ranger AeroSystems will look to acquire aerospace companies with at least $10 million in revenues or EBITDA above $2 million. The firm has specific interest in (a) Precision Manufacturing – sole source and limited source highly engineered flight critical parts on long life airborne platforms, both fixed wing and rotary wing; (b) Component Overhaul – value-added services for components, rotables, and sub-assemblies on any airborne system, with special emphasis on actuating systems; (c) Specialty “Niche” MRO (maintenance, repair, and overhaul) – technical services companies with unique value propositions in supporting commercial or military aircraft. Investing in other aerospace segments will be considered if there is a sound consolidation strategy that can be carried out.
Ranger AeroSystems’ first investment closed in November 2014 with the buy of a components overhaul and retrofit company serving the commercial airlines fleets.
Ranger Aerospace is a private equity consolidator specializing in aerospace operations and aviation services. Ranger adds value to its investments by focusing on operational improvements and accelerated growth. Previous successful investments include Aircraft Service International Group, Keystone Helicopter, and Ranger International. Ranger’s ventures have employed up to 4,250 employees, with operations at as many as 56 airfields and operating sites in North America, Latin America, Europe, Middle East, and Pacific. The firm was founded in March 1997 and is based in Greenville, SC (www.rangeraerospace.com).
Azalea Capital, the lead investment group in Ranger AeroSystems, invests in middle market companies that have minimum annual revenues of $10 million and EBITDAs of $2 million to $10 million. Industries of interest include manufacturing, business services, and value-added distribution with a special interest in aerospace, consumer packaged goods, healthcare and energy and industrial services. Azalea Capital was founded in 1996 and is headquartered in Greenville, SC (www.azaleacapital.com).
Argosy Private Equity invests from $4 million to $10 million in lower middle market companies with revenues of $15 million to $100 million and EBITDA margins of 10% or greater. Sectors of interest include manufacturing, business services, value-added distribution and aerospace. The firm has approximately $750 million in assets under management. The affiliation with Ranger Aerospace is through Argosy’s latest SBIC-supported private equity fund, which was capitalized with a target of $250 million. Argosy Private Equity was founded in 1990 and is headquartered in the Philadelphia suburb of Wayne, PA (www.argosycapital.com).
2014 PEPD • Private Equity’s Leading News Magazine • 12-12-14
